THERE IS A SIGNIFICANT PRODUCTION PROGRESS AT THE EARLY OF 2022, WILL THE NATIONAL AUTOMOTIVE INDUSTRY INCREASE?
Based on data from the Statistics Indonesia (BPS), the growth of the automotive industry sector moved steadily at 4-6% from year to year. Although there was a very significant decrease in 2020 caused by the paralysis of business in Indonesia caused by the Covid-19 pandemic, in 2021 the growth will gradually improve and in 2022 it is predicted to experience growth of 4.24% in line with the prediction of national economic growth. which is expected to grow by 5%.
Based on productivity data, it can be seen that automobile sales in Q1/2022 experienced a drastic increase compared to the same period in 2021. Based on data from the Association of Indonesia Automotive Industries (GAIKINDO), the average production increase in 3 months in Q1/2022 is up to 43% when compared to Q1/2021. The increase was due to increased production of motorized vehicles for the “Passenger Car Production” category which was adjusted to the potential demand in Q1/2022.
MOTOR VEHICLE SALES IN INDONESIA
Based on data from the Association of Indonesia Automotive Industries (GAIKINDO), in Q1/2022 there was a wholesale sales growth of 41.06% compared to 2021, from 187,026 units to 263,822 units. Although not as big as the increase in the previous year, the total sales are much larger than the same period in 2020 and 2021.
Automobile sales have indeed increased. However, motorcycle sales actually move the other way around. Based on data from the Indonesian Motorcycle Industry Association (AISI) in Q1/2022, there was a decrease in sales of 38.16% compared to the same period in the previous year, from 1,293,933 units down to 1,262,586 units, which was dominated by scooter sales of 87.58% of total domestic sales.
This decrease was due to delays in the receipt of component spare parts such as conductors and several other parts.
EXPORT AND IMPORT GROWTH
Looking at the growth of exports and imports, the automobile sector in 2021 will experience export growth of 14% and imports of 92% compared to the previous year. With each increase of 3,203,578 units for exports and 29,423,217 units for imports. It can be seen that the increase in imports was much larger than exports due to the increase in imports of components in the last 2 months (Feb-Mar) with an increase of more than 100%. The high import of components is believed to be a strategy for business players to overcome possible supply delays in the future.
As for motorcycles, there was a decrease in the number of exports by 28.3%, from 230,729 units to 165,443 units.
OBSTACLES IN THE AUTOMOTIVE INDUSTRY
The obstacles to the automotive industry sector which are still slowing its growth rate in 2022 are not much different from the previous year, namely:
- The impact of the Covid-19 pandemic is still the main obstacle in business development in the automotive industry sector at this time. Both for domestic and global markets.
- The impact of global component supply disruptions. Supply chain problems impact prices for consumers and slow the global economic recovery. US-based research and analytics firm for global capital markets Moody’s Analytics warns supply chain disruptions will get worse before they get better.
- There is a production shortage problem or a situation where the demand for a product or service exceeds the available supply. The Association of Indonesia Automotive Industries (Gaikindo) said that the government’s policies for the motor vehicle industry as stated in PMK No 20/PMK 010/2021 and Minister of Industry Decree No. 169 of 2021 concerning Sales Tax on Luxury Goods (PPnBM) proved to be right on target. However, it is necessary to adjust the production capacity which is hampered because it must comply with the applicable health protocols. In addition, the limited supply of semi-conductors is also one of the reasons for the delay in the acceleration of automotive production in Indonesia.